Canada's Reitmans' Q2 FY26 revenue flat at $215.9 mn, earnings decline

The gross profit declined 3.5 per cent to $122.8 million, with the margin slipping 220 bps to 56.9 per cent. Selling, general and administrative expenses (SG&A) expenses fell 2.6 per cent to $103.1 million.

The adjusted EBITDA stood at $21.4 million, down 8.5 per cent from last year, reflecting lower margins and unfavourable foreign exchange. Net earnings declined 16.6 per cent to $13.1 million, or $0.26 per diluted share, compared to $15.7 million, or $0.32 per share, in Q2 FY25, Reitmans said in a press release.

“Sales in the second quarter were among the best in the last few years, despite three fewer stores and the closure of Thyme Maternity. We were especially pleased with Reitmans' performance and the customer response to our summer collection,” said Andrea Limbardi, president and CEO of RCL. “Customers remained price-conscious, and we strategically moved inventory through focused promotions, which impacted year-on-year gross profit. Adjusted EBITDA was primarily impacted by foreign exchange, as we benefitted from a currency gain last year. We continued to focus on improving SG&A, achieving a reduction in costs of over $2.7 million.”

“Looking ahead, we're progressing on our five-year strategic plan, which includes driving brand growth through targeted investments in our retail footprint. In Q2, our renovated stores outperformed the rest of the fleet. In October, RW&CO will open its doors at an 8,000 square feet flagship in Saint-Bruno, Quebec, and unveil a bold new experience that reflects the brand's evolving identity and focus,” added Limbardi.

For the first half (H1) of FY26, net revenues fell 1.7 per cent to $374.7 million. The gross profit decreased 4.6 per cent to $211.2 million, with the margin narrowing 160 bps to 56.4 per cent. SG&A expenses inched up 0.6 per cent to $202.2 million. Net earnings plunged 78.2 per cent to $3.1 million, or $0.06 per share, and Adjusted EBITDA more than halved to $10.8 million from $24.2 million a year earlier.

As of August 2, 2025, RCL reported working capital of $149.6 million, including $125.3 million in cash. The company carried no significant long-term debt beyond lease liabilities and had no drawings on its credit facilities, the release added.

ALCHEMPro News Desk (SG)